Hi all. I was looking for some insight on renting SFH, Apts. to corporations for them to use for their executives. The way I undestand it, a corporation rents a property from you so they can have housing for their executives, employees, etc… Has anyone ever done this? Do you have to go through a Realtor? Property Management Co.? Any help is appreciated. Thanx.
The trend I’m seeing is that the companies provide relocation assistance instead of taking an active part of providing corporate housing. You may want to make the corporate relocation departments aware of your availability so that they can pass your information to interested parties.
Thanx BLL. Would I have to contact the corporation directly or is that something a loal realtor/ property manager handles. Thanx again.
I would go with the corporation directly. If they are using an outside vendor, they may direct you there and you could be a sub.
Great. Thanx.
phlemboy - furnishedowner can give you a lot of information about this. To rent to corporate executives you will need to have a furnished property.
Big corporations probably work with management companies and you would probably have a hard time providing services to them. My company has apartments in very expensive cities like NY and London. They are managed by management companies. I was a 100% traveller for few years in the past and I was never able to get one of those apartments because they were always being used by other executives. So instead of finding me another apartment the Company preferred that I stayed in a hotel paying $250 or $300 per night…
I believe you will probably have more lucky with mid and small sized companies. I particularly like furnishedowner’s business model. He seems to be very successful doing it.
Good luck!
Thanx. I’ll look into that. I’m familiar with Furnishdowner’s posts on furnished apts. The real reason I asked about that was because I’m considering renting current residence out and purchase a larger home that better suits my family’s needs. There are a few homes that are listed at 25% - 40% less than the “comps” for the area. I like the idea of buying at a huge discount but I’d also have to sell my current residence at huge discount. I have a nice solid house and I would rather turn it into a cash flowing property and have the asset. The reason for the corporate rental option is mainly due to the stable rental income. I also think you can charge more to a company than an individual who may not be able to afford the pmts. I’ll have to do some digging.
phlemboy,
In my area I haven’t found a demand for corporations renting executive housing. When I lived In San Diego I visited Texaco’s (I think) executive apartment rented then at $2,000/month at La Jolla Shores. That was very HIGH rent back then. So if you are in an area of big corporations you maybe can do it. I would love to have a corporation lease a house here for a year!
Actually. looking at my rental white boards, I see several medical agencies who are now in their 2nd year with us, but on a month-by-month basis.
In my small pond the demand has been corporations renting FOR people relocating until they buy a house. This is more short term, like 3 months. Or temporary professional workers who would otherwise be in hotels. Some of these people are just funded extra housing allocation and must find their own housing.
So my advice is to figure out the needs in your area. You can certainly do it, and it is a great money maker and 1 unit is sooo easy to manage.
Start with an ad in the paper under FURNISHED HOMES FOR RENT. Test response with that. Be sure to list price and amenities.
Do a simple 1-page flyer with price and pictures. Take or mail this to the HR people at those corporations and hospitals near your house.
Research the “Furnished Villa For Rent By Owner” websites. There are a bunch of them, and I can’t really steer you on that since we haven’t used them much yet. We have our own website.
Try Craig’s List. Others have had success with it. It does not seem real beneficial here though. It seems popular in urban areas.
Get those flyers out there to Realtor offices, and perhaps property management firms. They can steer people to you, and you back to them. You are not competition, but a help.
Research renting a furnished house in your area, as if you were moving. How do you do it? Where do you find the information? How can you do it through the phone book or on-line, like most people do?
Your rent should be under the nice hotels, so do some research. It’s a great idea. You will have some vacancy in your first year until you find your market.
This week we have rented to a radiologist (new hire) and his wife. They want to rent maybe for a year, while they figure out which neighborhood to buy a permanent home in. Also a private pay job transfer guy into our most budget studio ($1050), and a regular snowbird from North Dakota here for a month of sun, and a nursing traveler agency nurse. The usual mix.
Let us know how it goes. I am still surprised that more people aren’t seeing the value in doing this, especially in a market where it makes more sense to hang onto your old house and buy a new under market one.
Furnishedowner
phlemboy,
Don’t forget to depreciate all that furniture that you are leaving behind in your old house!
Furnishedowner
Thanx for the responses. I have a nice 3BR/2Bath cape. I probably would have to purchase some furniture for this house. My current furiture could use some updating. I would need to get about $1300/mo. just to break even with the PITI. I feel that if a QUALIFIED tenant caould afford this, they’s buy a home themselves. That’s why I’m leaning toward the corporate housing option. So I would have to contact the HR depts. of these corporations? I realize that I’ll have to advertise to test the market.
Yes, you need to contact the HR depts. of your local corporations to get their mailing addresses to send your flyer.
The rent on a 3 Bedroom here is $2100-2400/month. You need to pay all the utilities as people rent furnished for the convenience of not dealing with utilities. Lots of tenants don’t want to buy because they are only in town on a temporary basis.
Remember not to compare your house with other rentals, but with hotels. If you think of your house as a hotel, you will know what it needs.
Since you work in a hospital, start there with a visit to the HR dept. Ask them if they have travelers and where do they stay? Hospitals are our best source of tenants, month in and month out.
Purchasing furniture is no big deal. Just get good solid wood stuff. Look for dovetailed dresser drawer sides, no fiberboard as it doesn’t last. Estate sales, yard sales, thrifty ads and used furniture stores is where I shop. Don’t worry about updating the furniture. Instead worry about the cleanliness, comfort and function of especially the mattress and the couch.
Furnishedowner
Thanx. I’ll look into that.